Caixabank profit falls 42% on higher provisions

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Published: Oct 26, 2012 2:15 a.m. ET

Last Updated: Oct 26, 2012 2:32 a.m. ET

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MADRID--Spain's Caixabank SA CABK.MC said Friday its third-quarter net profit dropped 42% as costs soared following the takeover of a smaller rival, and after the bank continued to set aside money to cover potential losses on its real-estate assets.

MAIN FACTS:

-Third-quarter net profit fell to 7 million euros ($9.1 million) from EUR12 million a year earlier.

- Loan-loss provisions were up 37% on the year in the first nine months, to EUR2.69 billion, as the bank complied with regulation which forces the country's lenders to cover losses on their real estate holdings. The bank said it has now fully completed the new provisioning requirements.

- Caixabank's non-performing loans ratio jumped to 8.42% as of Sep. 30 compared with 4.9% in December 2011.

- Core capital fell to 10.8% in September from 12.5% in December 2011.

Corrections and Amplifications

This article was corrected at 07:33 GMT. The original incorrectly stated in the fifth paragraph that loan loss provisions were up 37% to EUR2.69 billion in the third quarter, when it should have said in the first nine months.

"Caixabank 3Q Net Profit Falls 42% on Higher Provisions," published at 0615 GMT, incorrectly stated in the fifth paragraph that loan loss provisions were up 37% to EUR2.69 billion in the third quarter, when it should have said in the first nine months.

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